03 May 2022 | Media Release
The Reserve Bank’s decision to lift the cash rate to 0.35 per cent reflects the interrelated challenges of rising inflation, supply chain bottlenecks, and acute labour shortages faced by businesses across the country.
“The Reserve Bank’s decision to raise the cash rate for the first time in more than a decade is not only indicative of the building inflationary pressures on cost of living, but also reminds us that the cost of doing business is also increasing,” ACCI chief executive Andrew McKellar said.
“The Reserve Bank is independent of the government and must make economic decisions as it sees them. With interest rates at extraordinarily low levels for the past few years, it was expected that the RBA would begin the process of tightening monetary policy.
“Having survived the pandemic, small business owners are now confronted with rising input and labour costs, forcing businesses to raise prices or absorb higher costs within already thin margins.
“Congested supply chains, exacerbated by the conflict in Europe and lockdowns in China, are continuing to drive up the cost of everything from washing machines to microchips, with small businesses bearing the brunt of these disruptions.
“Businesses are already facing the worst labour and skill shortages in almost 50 years. The RBA’s forecast that the unemployment rate will further decline to around 3 ½ per cent by early 2023 will stretch an already tight labour market.
“According to recently released ABS data, 57 per cent of all businesses have had the cost of doing business increase more than usual in the last three months. As such, the overriding priority for the next federal government is to pull all the levers it can to address the supply side constraints that are driving up inflation and holding back the economy.
“Until we see some of those external supply chain problems ease, until we get more workers coming back into the labour force, and until adjustments are made to monetary policy, inflationary pressures are likely to remain for some time.
1/08/2022
CANBERRA, ACT – The Australian Chamber of Commerce and Industry today hosted Mr Arshad Rasjid, chair of the Indonesian Chamber of Commerce and Industry (KADIN),...
28/07/2022
The latest state of the economy address from Treasurer Jim Chalmers is a clear warning for Australia that must provide renewed impetus to drive growth...
27/07/2022
Passage of legislation to cut carbon emissions is essential for delivering energy certainty to Australian businesses. “Australia must call time on its climate tug-of-war. The...
27/07/2022
Australian businesses continue to experience rising cost pressures with annual headline inflation surging to 6.1 per cent for the year to June, the highest level...
27/07/2022
A new independent agency, Jobs and Skills Australia, will be well placed to tackle Australia’s burgeoning skills deficit, and future-proof the country’s labour force against...
14/07/2022
Australia’s labour market is running white hot with the jobless rate continuing its downward trend to 3.5 per cent, its lowest level since August 1974,...
5/07/2022
The Reserve Bank continued the normalisation of monetary conditions today with a third increase in the cash rate in as many months, lifting the cash...
30/06/2022
Persistent labour and skills shortages continue to plague Australian businesses, with job vacancies reaching a record 480,000 positions in May. According to job vacancies data,...
27/06/2022
Giving pensioners the choice to return to the workforce would be a boost for Australian businesses struggling to find staff. Australia’s largest and most representative...
21/06/2022
Manufacturers are benefitting from a strengthening of demand in the Australian economy, but are facing supply headwinds and escalating costs that are the most challenging...
17/06/2022
The meeting of National Cabinet in Canberra today signals a renewed and bipartisan impetus from Australia’s leaders to overcome chronic workforce shortages, languishing productivity growth...
15/06/2022
The Fair Work Commission’s decision to increase minimum wages by 5.2 per cent and award wages by 4.6 per cent will hit those industries which...
7/06/2022
The Reserve Bank’s decision to hike the cash rate for a second time in two months by 50 basis points from 0.35 to 0.85 per...
7/06/2022
Australia’s largest and most representative voice for business, the Australian Chamber of Commerce and Industry, is urging consumers to support local goods this Australian Made...
31/05/2022
The Albanese Government’s ministry reflects a strong mix of experience and fresh talent for the Australian business community. “ACCI welcomes the new federal ministry and...
30/05/2022
The Australian Chamber of Commerce and Industry (ACCI) has congratulated Peter Dutton on his election as Liberal leader, and David Littleproud as Nationals leader. The...
26/05/2022
Australia must reach consensus on a plan for affordable and reliable power generation that balances domestic energy security and facilitates emissions reduction. Released today, the...
22/05/2022
The Australian Chamber of Commerce and Industry, the nation’s largest and most representative business network, congratulates Anthony Albanese and his team on the election of...
11/05/2022
In its submission to the Fair Work Commission’s annual wage review, the nation’s peak business network, the Australian Chamber of Commerce and Industry, has backed...
29/04/2022
The Australian Chamber – Tourism is urging both parties to commit to measures that will assist in the recovery, and capitalise on the potential, of...